CAMECO price target increased today to $35.00 by TD... 07:52 AM EDT, 09/15/2021 (MT Newswires) -- TD Securities raised its price targets on shares of Cameco Corp. (CCO.TO, CCJ), Denison Mines Corp. (DML.TO) and NexGen Energy Ltd. (NXE.TO) on Wednesday to reflect higher long-term price assumptions for uranium.
Analyst Greg Barnes maintained a Hold rating on Cameco and increased his target price on the stock to $35 from $25.
"The driver behind the meteoric rise in the spot price over the past month was and continues to be spot market purchasing by the Sprott Physical Uranium Trust," TD said in a note to clients.
"Although the 2005-2007 uranium price rally was driven by fundamental supply/ demand drivers and different from the investment-driven demand we are seeing today, we believe that the impact on uranium producer/developer valuations will be similar, given the small size of the sector, combined with a green/decarbonization thematic," Barnes said.